XRP lags Ripple ETF as AUM nears $500 million milestone

Surging to an all-time high of $3.50, XRP has outpaced most major tokens this year, driven in part by Republican support for the CLARITY Act and the launch of Ripple’s new USD stablecoin. Yet it’s the Teucrium Leveraged XRP ETF (XXRP) that has stolen the spotlight.

The XXRP ETF has increased by 136% since its inception in April, while XRP has risen by 81% during the same period. It has also had robust inflows, with its assets surging to $471 million. 

Together, these developments signal growing institutional confidence in Ripple’s future—and suggest the market is beginning to price in regulatory clarity and product innovation.

XRP price had a strong performance this week, surging to a record high as Republicans voted for the stablecoin-focused CLARITY Act.

81st biggest asset globally

Ripple’s year-to-date gains are 66% and its market capitalization is at about $204 billion. As for its fully diluted valuation, it is over $300 billion.

It has grown into the 81st biggest asset globally.

But the XXRP fund has actually outperformed XRP. Why? Unlike other popular crypto ETFs, it is a leveraged fund that seeks to generate daily returns of 2x the performance of XRP price. If XRP increases by 1%, the XXRP stock will rise by 2%. 

It is common for some leveraged ETFs to beat their underlying asset. For example, the leveraged ProShares UltraPro QQQ has jumped by 240% over the last five years, while the Nasdaq 100 has gained 126% during the same period. 

XRP jumped as investors celebrated the signing of the GENIUS Act, which will support its Ripple USD stablecoin. Data shows that its market cap has jumped from zero in December last year to over $517 million today. It is also slowly closing in on PayPal’s PYUSD. 

XRP price technical analysis

The daily timeframe shows that the XRP price has been in a strong bull run in the past few weeks. It broke out above the upper side of the symmetrical triangle that was part of the bullish pennant pattern.

XRP then crossed the important resistance point at $3.38, the highest swing on January 16. It has remained above the 50-day and 100-day moving averages, while most oscillators, such as the RSI and the MACD, have pointed upward. 

The height of the flagpole section of the bullish pennant was 86%. Therefore, measuring the same distance from the breakout point gives it a target price of $4.2615.